Linklaters toasts 'world-first' $550m securitisation of wine and spirits assets

Linklaters has advised fintech client Ferovinum on a landmark $550 million asset-backed securitisation programme, in what is being hailed as the first of its kind for the drinks industry.

The London-based company, which provides funding and supply chain solutions to drinks businesses, secured the funding from a group of investors led by private capital firm Pollen Street Capital, alongside other private credit investors and commercial banks.

The deal brings innovation to a sector that has traditionally relied on direct equity investment and conventional inventory finance. Asset-backed securitisation (ABS) allows companies to raise debt by pooling receivables and inventory claims into collateral for investors.

Linklaters said: "The underpin for the asset-backed securitisation is a multi-jurisdictional trust structure which enables access to the inventory and the financial receivables and is portable as Ferovinum expands to other countries."

Ferovinum was founded in 2018 by two finance experts and has already handled over £300 million worth of transactions for wine and drinks businesses.

It says the new securitisation programme will allow it to expand its services into the US, EU and Australia later this year.

Advising

The Linklaters team was led by structured finance partner Tom Quoroll, managing associate Sebastian Witte and corporate partner Chris Staples.

Witte said: "It has been a privilege to put in place this financing platform with Ferovinum, which will be a key part of their growth story. We're proud to have delivered a novel cross-jurisdictional legal structure tailored to the needs of our client and their investors."